At the All groups level, the CPI fell in all capital cities this quarter with Melbourne falling the most with a 0.5% decrease, while all other cities showed decreases in the range of 0.2% to 0.4%.

The transport group was the main contributor to the fall in all cities due to the impact of price decreases in automotive fuel. Health prices dropped in all cities and were the second most significant contributor in all cities except Perth, Darwin and Canberra. In Perth the second most significant contributor was finance and insurance services, while in Darwin it was recreation and in Canberra, clothing and footwear.

Partially offsetting some of this quarter's decreases were increases in the food, housing and alcohol and tobacco groups which recorded increases in all cities. Food prices provided the most significant overall offset, with a 2.0% increase in the weighted average of the 8 capital cities spread across all the cities with price increases ranging from 1.2% increase in Perth to 2.7% in Brisbane. In Darwin and Perth, housing was a stronger contributor than food.

The larger quarterly decrease for Melbourne was mainly due to a smaller increase in housing prices and a bigger decrease in health costs than other cities.

Over the twelve months to December quarter 2008, the All groups CPI rose in all capital cities with the increases ranging from 3.2% in Melbourne and to 4.3% in Brisbane. The higher result in Brisbane is largely due to stronger than average rises in housing prices.